Egypt expects to receive $3 billion loan, in part for sustainable green projects – sources

Egypt is set to finalise a $3 billion loan to be used in part to finance sustainable green projects, three sources with knowledge told Reuters on Tuesday.

The loan, arranged by Emirates NBD (ENBD.DU) and First Abu Dhabi Bank (FAB.AD), follows the repayment earlier this year of a $2 billion facility Egypt received last year, one of the sources added.

Part of the loan will be “green”, meaning proceeds will be used to finance sustainable projects, and other will be Sharia-compliant, the sources further elaborated, asking not to be named because the deal has not been made public yet.

A group of conventional and Islamic banks are participating in the syndication process, the sources added.

The new transaction was initially marketed to banks with a $2 billion size but was raised because it was over-subscribed, two of the sources noted.

One of the sources said the loan would need parliamentary approval to be finalised.

It will have a three-year tenor, two of the sources said.

In August 2020, Egypt raised a $2 billion facility arranged by Emirates NBD and FAB to finance the state budget and support the economy. That facility, split into conventional and Islamic tranches, had a one-year duration.